Aon has unveiled the Florida Flood v3.0 model, after receiving certification from the Florida Commission on Hurricane Loss Projection Methodology.
The new model, developed by Impact Forecasting — Aon’s catastrophe model centre — in collaboration with global flood and climate risk modelling firm Fathom, assesses flood exposures in the state to inform (re)insurers’ rate filings.
The firm says the platform allows clients to leverage the latest data, analytics and research to quantify flood risk from tropical and non-tropical weather systems across all three flood sub-perils, as well as tropical cyclone storm surge.
Floods pose a year-round threat to Florida due to its extensive coastline and frequent storms. According to data from Aon’s Catastrophe Insight, the National Flood Insurance Program’s (NFIP) annual average loss in Florida has exceeded US$1.1 billion since 2004. In 2022 alone, Hurricane Ian drove NFIP payouts beyond US$5.1 billion on a price-inflated basis.
David Colbus, regulatory and compliance lead for Impact Forecasting at Aon, states: “Aon’s new flood model supports our clients with rate-making and underwriting as they seek to navigate volatility and build resilience in their Florida portfolios.
“As we continue to evolve our modelling suite and innovate on behalf of clients, we enhance clarity and confidence around flood exposures and assist the pursuit of profitable growth opportunities, which requires the accurate assessment and pricing of risk.”
Stuart Whitfield, CEO at Fathom, adds: “We are proud to see our flood hazard data supporting Aon’s Florida Flood model, providing (re)insurers with intelligence to develop a robust view of flood risk.
“This initiative underscores the depth of our longstanding collaboration with Aon and highlights our shared commitment to deliver actionable insights that empower better decision-making for (re)insurers statewide.”
